Ford Motor Company raised its 2026 profit forecast on Tuesday after second-quarter earnings surpassed Wall Street projections, even as revenue declined and fell slightly short of estimates.

Ford shares were up nearly 7% in after-hours trading on Tuesday.

Below is a comparison of the company's second-quarter results against the average estimate compiled by LSEG:

- Earnings per share: Adjusted 42 cents vs. an expected 35 cents

- Automotive revenue: $44.89 billion vs. an expected $45.86 billion

The Detroit automaker attributed its performance and the raised guidance to operational improvements, resilient vehicle pricing, and a higher mix of profitable products.

Ford's updated guidance includes full-year adjusted earnings before interest and taxes (EBIT) in the range of $10 billion to $11 billion, up from the previous forecast of $8.5 billion to $10.5 billion. The company also raised its adjusted free cash flow forecast to $6 billion to $7 billion, compared to the prior range of $5 billion to $6 billion.

The company said the additional free cash flow includes an earlier-than-anticipated cash recovery of $500 million from a previously announced $1.3 billion in expected tariff compensation.

The earnings upgrade was primarily driven by a $500 million improvement in its traditional combustion engine business, Ford Blue, which is now expected to earn between $5 billion and $5.5 billion. The company also narrowed its commercial vehicle unit profit forecast to between $7 billion and $7.5 billion, from a previous low of $6.5 billion.

"We delivered another strong quarter and raised our full-year guidance, but more importantly, there is growing evidence that Ford is becoming a more profitable, disciplined, and truly differentiated company," Ford CEO Jim Farley said in a press release.

Ford's Q2 Results

Ford narrowed its projected loss for its electric vehicle unit, Model e, to about $4 billion, down from a prior forecast of $4 billion to $4.5 billion, and said its financial services division also performed slightly better than expected.

Revenue from each automotive business group fell short of analyst expectations. Ford's total revenue, including its financial services arm, declined 4% year-over-year in the second quarter to $48.3 billion.

Ford reported a net loss of $1.3 billion in the second quarter, primarily due to a previously announced one-time special charge related to the strategic contraction of its all-electric vehicle operations. The charge totaled $4.2 billion, including $3.6 billion for the restructuring of the BlueOval SK battery plant joint venture with SK On and $500 million from the cancellation of an electric vehicle project.

The loss is larger than the net loss of $3.6 million reported in the second quarter of 2025.

Despite a series of recent recalls, Ford reiterated its plan to achieve roughly $1 billion in material and warranty cost reductions for the full year.

F-Series Truck Production Recovery on Track

Ford Chief Financial Officer Sherry House said the automaker's F-Series pickup truck production recovery will continue into the second half of the year, reaffirming a roughly $1 billion improvement compared to the impact reported last year.

"We are well on track with our Novelis aluminum supply recovery plan and remain confident in achieving a net $1 billion EBIT improvement in 2026, which will be heavily weighted toward the second half of the year," House said on a media conference call.

House declined to say why the recovery was on the lower end of the previously estimated range, but reiterated the $1 billion improvement target remains unchanged.

The automaker has faced production issues with its F-Series trucks since two fires at aluminum supplier Novelis, which supplies materials for its large trucks and SUVs, paralyzed production. Last month, the company's New York plant resumed affected production.

Ford said Tuesday it expects to recover about $2.5 billion in vehicle production lost due to the fires, which is at the low end of its previous recovery range of up to $3 billion.

Before Ford's earnings release, Jefferies upgraded the stock ratings of both Ford and General Motors from "Hold" to "Buy." Analyst Philippe Houchois said Ford is poised to regain momentum, and the second quarter may represent a trough.

"We believe Q2 is the production trough, with a normalizing upward trend following the Novelis incident," Houchois wrote. "Given the favorable U.S. market conditions, management could raise guidance in the second quarter."